House Bill 1098 is Now Law

by | Apr 29, 2024 | Property Management, Rental Lease Agreements

Colorado Capitol Chambers
Gov Polis signing House Bill 1098

HB 24-1098 

Before April 19, owners and property management companies could decide not to renew a tenant’s lease for any reason. However, after Governor Polis signed HB 24-1098 last week, lease renewals became more complicated because the measure went into effect immediately. The bill redefines the “just cause” of eviction and substantially strengthens tenants’ rights in Colorado. The bill’s purpose is to keep leaseholders housed, but state regulations typically increase business costs, so rents will eventually rise because of this legislation. Click here to read the bill.

House Bill 1098 maintains the following circumstances when owners or property managers can evict renters in the middle of a lease, including when:

  1. Failure to pay rent.
  2.  Substantial lease violations.
  3. A tenant becomes a nuisance and interferes with the landlord’s or other tenants’ quiet enjoyment.
  4. Tenant damages a property, but there is an exception for victims of domestic violence.

HB 1098 sets the following guidelines for non-renewals. The legislators seem stuck on applying 90 days to all the rules below.

  • Suppose the owners decide to demolish or convert the property to nonresidential use. In that case, the notice needs to include a description of the timeline of the demolition or property-use change.
  • The notice must include a work description and timeline if the owners decide to renovate. If the lessor completes the work in less than 180 days, they must give tenants a first right of refusal. Renters have ten days to notify their landlord that they want to sign a new lease for the home.
  • If the owners or members of their families decide to move into the rental, they must do so within three months after the tenant vacates. If they do not, they cannot rent the property for at least 90 days after their tenant vacates the home.
  • If owners decide to sell their rentals and it does not sell or they change their minds, they can put the rental back on the market 90 days after the tenants vacate unless they can prove that the home for sale after the renters vacated.
  • Tenants refuse to agree with reasonable change in lease after receiving 90 days’ written notice of the changes.
  • Owners and property managers can decide not to renew if tenants submit rent payments ten calendar days late three or more times in a lease period. Property managers must give tenants 90 days’ notice of their non-renewal decision.


Tenant Mischief 

Most tenants are responsible and follow the terms of their lease, but this bill opens the door to legal mischief. Tenants facing eviction after months of unpaid rent or following a history of damaging the property will suddenly have grounds for claiming retaliation by their landlords. It is up to a judge to decide whether their claims are valid, drastically slowing down the eviction process. Tenants will keep their tenancy until the courts decide, weakening owners’ property rights. Landlords and the groups representing them feel the measure could lock landlords into perpetual contracts.

Counter Measures

Savvy owners and property managers will no longer wait until leases end to part ways with troublesome renters. Instead, they will initiate evictions for unpaid rent and contractual violations and become more discerning about who they rent to. Non-payment of rent and legal costs will force landlords to increase rents in a market that has already outpriced many residents in Denver and other cities across Colorado. Investment Community of the Rockies, Rocky Mountain Home Association, Colorado Concern, and the Colorado Landlord Legislative Coalition all opposed the passage of HB 24-1098.

The government of Colorado has passed many bills in the last two legislative sessions to strengthen tenant rights and prevent people from being displaced. Opponents say all these regulations make Colorado less attractive to real estate investors and make it harder for landlords to operate in Colorado, driving up costs. Some home investors may choose to put their properties under professional management because of the complexity of rental property laws and regulations.

DenCO Property Management tries to inform our owners about upcoming legislation and regulations that might affect the management and value of their rental property investments. We have been in business since 1999 and manage over 150 homes, duplexes, and apartment rentals in the DU, Washington Park, and other Denver neighborhoods. Call us at 303-722-9688 or click here to complete a Contact Us form.